Germany Approves Nearly €800 Million in Defense Exports to Israel

Germany approved defense exports to Israel worth almost €800 million in the first half of 2026, according to data from Germany’s Ministry of Economics and Energy. The ministry said none of the approvals were classified under Germany’s legal category of “war weapons,” although the licenses included other military equipment.

Much of the increase from 2025 is linked to a major naval project worth roughly €500 million, widely identified as the INS Drakon submarine. The remaining approvals are for projects carried out jointly by Israeli and German companies for the German military, and other defense equipment.

This comes less than a year after Germany lifted restrictions on some arms exports to Israel. Chancellor Friedrich Merz imposed the restrictions in August 2025 on weapons that could be used in Gaza. Berlin removed them in November following the ceasefire between Israel and Hamas and returned to reviewing Israeli export requests on a case-by-case basis.

Germany is also becoming an increasingly important customer for Israeli defense systems. Berlin has purchased Israel’s Arrow 3 missile defense system and is considering additional Israeli weapons, including the LORA ballistic missile, which Germany successfully tested this week.

The INS Drakon is the largest submarine built in Germany since World War II and is reportedly the largest and most powerful submarine in the Middle East. It is also Israel’s most expensive submarine. The vessel left the TKMS shipyard in Kiel this week and is on its way to join Israel’s existing fleet of five submarines. According to reports, it is more than 70 meters (230 feet) long and weighs more than 2,000 tons.

The countries will maintain close naval cooperation in the coming years. Israel has ordered three additional Dakar-class submarines from Germany, with deliveries expected to begin in 2031. The deal is estimated at approximately €3 billion; the German government is financing part of the cost.